Essential Financial Issues to Sort Out Before Emigrating
Emigrating to another country can be a great way to boost your career and quality of life. It will be an exciting time as your life takes a new direction, opening up many fresh opportunities. Arranging and going through the whole process can be complex, depending on which country you are moving to and on other circumstances. There are many financial considerations that must be taken into account and arranged to ensure the whole action of emigrating goes as smoothly as possible.
The first thing you will need to do regarding tax, is to inform HMRC in the UK that you will be moving abroad. As an expat you will be exempt from such taxes, but if you do not tell the authorities you will be charged the additional taxes. The easiest way to do this is to fill in and return a P85 form from Revenue and Customs. An R105 form is also required if you will be paying tax abroad yet also receiving interest on savings in the UK. Of course, you will need to arrange the appropriate tax situation within the country you are moving to as well.
Unlike the UK, most other countries do not provide free healthcare for their inhabitants. However, Britain does have special agreements with some countries where your healthcare and costs will be covered, so check with the nation or NHS Choices first. If you’re going to a European country then applying for a European Health Insurance Card (EHIC) is a good idea, which will help you with access to reduced cost health care.
There are various legal implications of emigrating abroad outside of tax and healthcare issues. If you’re going to a new job then the company should take care of many issues, such as compliance with labour laws, visas, entry and taxes. However, for those going alone, you will need to ensure all the appropriate regulations are met, so it can be worth seeking legal help beforehand.
Opening a bank account in your new homeland will be an essential task, to help meet tax requirements but also for the ease when transferring money from your UK accounts. Those retiring abroad will need one to access their expat pensions, while other investment and financial planning purposes will require a bank account in your new country.
It will make your emigration a lot simpler and more enjoyable if these issues are soted out before you arrive in your new home.